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Diabetes mellitus is a chronic disease affecting more than 300 million people worldwide. Even after advances in medicine, we are still away from a permanent solution to this problem. Longterm use of currently available treatments are associated with adverse effects ranging from cardiovascular conditions, renal disorders, liver ailments, and weight gain. Subsequently, a significant diabetic population seeks herbal medicines that are said to control blood sugar levels. Several plants have been explored in this context; one such plant is Withania coagulans Dunal., which is known for the hypoglycemic property due to its fruits. Different plant parts and bioactive components like withanolides exhibited anti-diabetic activity in type 2 diabetes models in vivo and in vitro. However, clinical studies are limited and more research is warranted. Bioactive composition of W. coagulans include Withanolide J, F; Coagulin C, E, L; Ajugin E, Withaperuvin C and others. Bioavailability of Withaferin A from W. coagulans was enhanced by co-administration of Piperine. Herbal quality control and commercialization aspects of W. coagulans are also highlighted. W. coagulans can be employed in managing type 2 diabetes mellitus after detailed follow-up studies.